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Is Public–Private Partnership (PPP) a Preferred Strategy for Procuring Smart Infrastructure in Developed Countries: An Empirical Study of the Perceived Benefits, Barriers and Recommended Strategies

Author

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  • Nimesha Sahani Jayasena

    (Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China)

  • Daniel W. M. Chan

    (Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China)

  • Mohan M. Kumaraswamy

    (Department of Civil Engineering, The University of Hong Kong, Pokfulam Road, Hong Kong, China)

Abstract

Attention to Smart Infrastructure (SI) has risen due to its advantages, including better access, increased quality of life, and simplified maintenance management. To develop SI, Public–Private Partnerships (PPPs) are identified as potentially beneficial procurement strategies, which boost capacities to manage risks by pooling diverse resources. However, the applicability of PPP in SI developments in developed countries is scarcely researched. This may be due to underestimating the other potential benefits from PPP, although developed countries may have their own funding to develop SI. Hence, this research aims to evaluate the significant factors influencing the success of PPP in SI projects in developed countries based on public-sector satisfaction (S1), private-sector satisfaction (S2), and end-user satisfaction (S3). A comprehensive literature review was followed by expert interviews and an international survey, focusing on developed countries. The Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was applied to map the connections amongst the influencing factors and S1, S2, and S3. The results reveal that legal and political-related factors significantly impact on S2 and S3, while social barriers significantly impact on S1. The effect of the constructs and factors on S1, S2, and S3 along with their rankings are unveiled in this research paper, providing a sound basis to increase success levels and minimize shortfalls in PPP to boost SI developments in developed countries.

Suggested Citation

  • Nimesha Sahani Jayasena & Daniel W. M. Chan & Mohan M. Kumaraswamy, 2022. "Is Public–Private Partnership (PPP) a Preferred Strategy for Procuring Smart Infrastructure in Developed Countries: An Empirical Study of the Perceived Benefits, Barriers and Recommended Strategies," Sustainability, MDPI, vol. 14(11), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6421-:d:822933
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    References listed on IDEAS

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    1. Ahmed M. Selim & Pasent H.A. Yousef & Mohamed R. Hagag, 2018. "Smart infrastructure by (PPPs) within the concept of smart cities to achieve sustainable development," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 14(2), pages 182-198.
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    2. Junjiao Gong & Yingyu Lu & Yang Xu & Jincun Fu, 2022. "Fiscal Pressure and Public–Private Partnership Investment: Based on Evidence from Prefecture-Level Cities in China," Sustainability, MDPI, vol. 14(22), pages 1-15, November.

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